The total factory overhead for Continental Styles, Inc., is budgeted for the year at $360,000, divided into four activity pools: cutting, $120,000; sewing, $60,000; setup, $100,000; and inspection, $80,000. Continental manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows:

Each product is budgeted for 20,000 units of production for the year. Determine 

(a) The activity rates for each activity 

(b) The activity-based factory overhead per unit for each product.

Transcribed Image Text:

Cutting Sewing Setup Inspection 1,000 dih 2,000 dlh 1,600 setups 3,500 inspections 400 Jeans 1,000 3,000 dlh Khakis 2,000 3,000 dh 500 2,000 setups 4,000 inspections